NSW is top performing economy in Australia, ACT overtakes Victoria

New South Wales CBD — People walk through the Central Business District on the first day of Autumn in Sydney March 1, 2004. Reuters/David Gray

New South Wales remains on top of Australia’s economy for nearly two and a half years now. Meanwhile, the ACT secures second place as it overtakes Victoria.

NSW is declared number one when it comes to business investment, retail spending and dwelling starts in the April edition of CommSec’s State of the States quarterly report, which aims to provide a consistent picture of the nation’s engine rooms by measuring every state’s performance in eight areas. The categories also include unemployment, population growth, economic growth, construction work and housing finance.

CommSec chief economist Craig James explained that the recent findings show a multi-speed national economy. “NSW is solidly on top with little to separate the ACT and Victoria,” he said per the Daily Telegraph.

The state’s retail spending was 16.4 percent higher than the 10-year average in the December quarter. CommSec sees the red-hot housing market as the culprit behind the surge. Sydney’s solid housing market reportedly kept NSW in the lead for dwelling starts with 87 percent above decade averages.

Furthermore, NSW leads the way with business investment as it obtained 15.4 percent above decade-average levels. Other states and the Northern Territory, on the other hand, had business spending well below decade averages.

The recently released CommSec report also delivered the news that Victoria fell from second to third place after the ACT displayed firmer results for business investment, population growth and housing finance. James said the economic momentum is on ACT right now because of the strong results it posted for the aforementioned economic indicators.

Although Victoria slipped one spot, CommSec said there is little to separate it from ACT because it is leading in population growth. The population in the state has risen 2.13 percent in comparison to a year ago.

Tasmania secured fourth place, Queensland fifth, Northern Territory sixth and Western Australia seventh. As for Queensland, the report shows that it benefits from annual growth in exports of 43 percent. The state, however, was second weakest in unemployment and construction work. The strongest jobs market belongs to the Northern Territory. The state also boasts the lowest trend in unemployment rate at 3.5 percent.

CommSec believes that the economy in South Australia could be improved over the coming year as employment grows. In Western Australia, unemployment dropped in the past three months, but it remains struggling after the end of the mining construction boom. Agriculture and tourism are perceived to drive growth.